Indian stocks kick off fresh week in the green
Apr 22, 2024
New Delhi [India], April 22 : Indian stock indices started the fresh week in the green, carrying over positive momentum from the past week's closing, possibly due to fresh buying on dips.
At the time of filing this report, Sensex and Nifty were 0.3-0.4 per cent higher. Among the widely-tracked Nifty 50 stocks, 41 advanced, 8 declined and one unchanged, NSE data showed.
Last week, the Indian stock market nosedived into negative territory with continued selling for the fifth session till Friday morning, succumbing to the escalating geopolitical tensions between Iran and Israel. Making a strong comeback from the early losses, Indian stock indices closed the day and the week's trading on a high on Friday.
In the near term, Shrikant Chouhan, Head Equity Research, Kotak Securities said market participants will keep a tab on the geopolitical developments and the impact of that on equity markets and commodities including oil and gold.
Volatility returned in Indian stock markets after a smooth rally at the start of April. The current volatility is primarily driven by Foreign Portfolio Investor (FII) selling activity. Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately, as the ongoing geopolitical crisis in the Middle East likely pushed investors to take money off their portfolios.
Foreign portfolio investors (FPIs), who continued to remain net buyers for the third month until a few days ago in April, have cumulatively sold stocks worth Rs 5,254 crore, National Securities Depository Limited (NSDL) showed.
"The coming week's price action in the markets will be determined by two major factors. The US Federal Reserve's rate setting committee meets in 10 days for its next FOMC meet," said Ajay Bagga, banking and market expert.
He added, "The second factor looming on the markets is the threat of any escalation in the Israel-Iran direct conflict post the Passover festival getting over in Israel. Earnings season has so far progressed as per expectations but with both global and Indian large-cap earnings slotted for the coming week, we can expect sharp market reactions".
This week is poised to bring forth earnings reports from both global and Indian large-cap companies. This is anticipated to trigger sharp market reactions and may further amplify market volatility.
